Back on My Refinery Game

Post market wipe out, I want to reassert my wild eyed claims that there isn’t a better sector than the refiners. They have money coming out from their ears and margins have not given back at all, despite the monstrous drop in crude. The Brent-WTI spread is here to say, at least for another two years. And the mid-continent refineries are the best ways to profit from it.

My favorites are HFC, CVI and of course WNR. Other refiners worth a look: DK and MPC.

It’s my fall back sector, one that I am confident in, despite the fucked up economy.

Today, I bought CVI and TCK, in order to press my bets on the coming 10,000 point rally. After my post, I’ve been adding to both CVI and TCK, bringing my cash position down to 30%. I will not throw anymore money into the flaming barrel of garbage, also known as the market. I will simply have to suffice on 70% long and my small EXH hedge.

In summary, I am long TCK, WNR, GSVC, TNA, CVI, TEX, DECK, IPGP and CLF. You cannot stop Le Fly. You can only hope to contain him.

I bought 15,000 TCK, FTW.

I bought 5,000 CVI.

Disclaimer: If you buy CVI because of this post, Moody’s will downgrade Germany and France tonight. And, you may lose money.

I am drinking from a large mug filled with Earl Grey tea, watching Cramer have a seizure on CNBC. Europe is sharply higher despite Italy’s credit downgrade. Everyone is so very scared of CDS spreads widening. But, that’s just a symptom of fear. CDS were blowing out in 2008 too, only to get fucked when the crisis was averted. We have a small window of opportunity to rally 10,000 points in a single day. However, after we rally, expect grimness.

Now that I have some skin in the game, long 65% in equities, I was hoping to avoid getting bounced into a murderhole. I realize Mother Market is upset with me and I haven’t made a sacrifice to the stock Gods in over 3 months. But come on already, cocksucker. Give Plutonium Petey a little respite, so he can further finance the mobilization of his orbital space cannon, for the explicit purposes of offensive war.

On a side note, I was looking for a bottle of Culmen Reserva 2004, a fairly hard to find vintage. I went to some bullshit website and ordered it. Upon delivery, to my dismay, they sent me a 2005. Can you believe that? Those fucking scoundrels sent me a 92 rated vintage instead of the 96, the 2004. My point: there is no honor in this world, not even amongst gentleman in wine circles. Everyone is trying to steal money from one another. It’s pathetic.

Having said that, I intend to “steal” a great deal of money from those who are short my positions today.

As an aside, check out ZROZ, an alternative to TLT, albeit thinly traded.

The robots are broken. We rallied about 6% inside of 30 minutes today. Soon enough, the HFT fucktard bots are gonna go rogue (No Palin) and bid up the market until the average balance of a short sellers account is negative $1,000,000,000, which incidentally would wipe out the entire banking system altogether. Irony.

Because of the coiled back nature of this market, absent any good news, the possibility for a spectacular single day rally is present. I am not talking about your average, run of the mill, regular shmuck from 0hio trying out finance for a few years type of run. No. I would like to see gold drop $1,000 in a single day at the same time stocks rally 10,000 points, just to shut Jim Rogers and Peter Schiff up–once and for all. The very idea of gold makes me sick.

Many of you are scared because you are weak. “The Fly” is a golden falcon, breaking the necks of migrating birds for sport.

Today over 500 stocks gapped higher by 10% or more. That’s ridiculous. 99% of those gains occurred in the final hour of trade. It’s not possible for this to occur, unless the buying was automated by some magical genie in a server rack. If you are short stocks here or long FAZ, you stand the chance to go from up nicely to negative $1 billion within minutes.

I remain short EXH for sport and will liquidate new longs into strength.

NOTE: H/t to TysonandOne in 12631 for putting my SHOMP on paper.

Today I applied a tax to your accounts, those tipped with cement heads and small dicks. I bought into the maelstrom and came out victorious. As discussed earlier, my cash position is down to 35%, as I am looooong millions in WNR, TEX, CLF, DECK, IPGP and TNA.

Check my pedigree.

I warned you to avoid betting against sublime harmony in mathematical precision aka The PPT, yet you chose to press your bets in SKF. I offer no condolences, only disdain. The invincible Le Fly is spinning helicopter blades in your general direction, spearheaded with his WNR.

This is act 1. Next up, panic buying ensues, clown raping your zeroedge ass back into oblivion.

Today I made back 1 week worth of losses, aka more money than you will ever see in your entire lives.

There are very specific correlations that I am watching, all to do with predicting a sharp rally higher. It should be no surprise to non-members of The PPT that we are oversold. I don’t think that betrays the data paid for by members. What’s even more interesting than that is the incredibly low level of percentage of large cap stocks rated buy.

As of yesterday, just 1.35% of large cap stocks were rated buy, the second lowest reading ever. The last time the reading was this low was on 9/22/11, which led to a sharp rally in the S&P from $112 to $117 in a matter of days. On 8/8/11, the level was below 3%, leading to another monster rally up to $117 shortly thereafter. Algorithms are unable to read news and discern whether Greece is going to get a bailout or not. So it’s important to fall back on intuition and market experience when positioning.

For me, this is an opportunity to buy into fear. I do not intend to overstay my welcome due to the unresolved issues at hand. However, based purely on the laws of mathematics, we are due for a cocaine, Rick Ross, GORILLA rock smashing rally.

Top picks: long WNR, DECK, IPGP, TEX, CLF, short EXH.

I allocated 35% of my cash today, buying WNR, CLF, DECK and TEX. This is what I call “buying the blood” and it never feels right until it does.

For the next few hours, I will zipping through outerspace, traveling through time. Feel free to chat amongst yourselves. However, keep it distinguished.

I bought 25,000 WNR and will continue to do so, until I get my share.

First, let me just say, our government is trying to purposely repeat the mistakes of the Great Depression. It is truly pathetic. The GOP wants austerity and the fucking dems want a trade war with China. They are fucking babies, unfit to lead. But if you think we have it bad, take gander at Europe. Their market losses are 3-4 times ours. The amount of carnage and loss of wealth taking place in Europe is nothing short of staggering.

If you’ve been taking hits, trying to to trade this tape, take a deep breadth and chill the fuck out. Ignore the misfits who offer nothing but vitriol. Again, I hate to constantly beat up on Twitter, but so many of those so called market experts are full of shit. Just so you know, behind the scenes, the managing elite at iBC have been banning a great many people, in order to clean up the site. While you might believe freedom of speech should reign supreme, the truth is, noise must be eliminated from intelligent discussion. I strongly advise that you cease and desist clowning around and get to work.

A lot of people are telling you to buy high dividend paying stocks. As much as I appreciate a good divvy, in a downward spiraling market, dividends are pointless. You will end up losing 10-20% of your principal before you receive your fist payment. What’s the point?

To that point, I screened for large cap stocks, yielding greater than 2%, that are up over the past 3 months. Here are the results:

No. Ticker 3-month Return Dividend Yield Market Cap
1 BMY 8.03 4.20 53,520,000,000
2 OKS 7.09 5.00 9,500,000,000
3 KMB 6.69 3.90 27,820,000,000
4 VFC 6.68 2.10 12,970,000,000
5 DCM 5.89 3.10 75,720,000,000
6 PGN 5.67 4.80 15,240,000,000
7 ED 4.99 4.20 16,700,000,000
8 DUK 4.79 5.00 26,620,000,000
9 SO 4.37 4.50 36,030,000,000
10 BAP 3.72 2.10 7,320,000,000
11 CHL 3.58 3.70 195,500,000,000
12 LO 3.49 4.70 15,320,000,000
13 D 2.74 3.90 28,900,000,000
14 NI 2.50 4.30 6,000,000,000
15 GIS 2.48 3.20 24,770,000,000
16 HSY 2.19 2.30 13,470,000,000
17 EPB 2.03 5.40 7,300,000,000
18 CNP 1.94 4.00 8,360,000,000
19 MO 1.63 6.10 56,680,000,000
20 RAI 1.25 5.70 21,850,000,000
21 MCD 1.10 3.20 90,610,000,000
22 MMP 1.03 5.20 6,810,000,000
23 AEE 0.59 5.20 7,190,000,000
24 CL 0.44 2.60 43,140,000,000
25 TGT 0.38 2.40 32,280,000,000
26 PPL 0.36 4.90 16,490,000,000
27 SCG 0.25 4.80 5,220,000,000
28 NTT -0.17 2.90 63,380,000,000
29 XEL -0.53 4.30 11,770,000,000
30 PEG -0.83 4.10 16,880,000,000

So that’s it, just 30 companies. Before you know it, people will sell them too. Even worse, if the economy worsens, the dividends will be called into question, offering a catalyst for short sellers to press the shares, further fucking you into a murderhole.

If you want safety, you’re better off hedging your longs with shorts. Don’t be afraid to sell short. As you can see, it can be very rewarding.

In the pre-market, shares of MS are getting smashed again, alongside everything else. I do believe we are very close to a sharp bounce. However, I will be very patient with my cash, opting to slowly dollar cost average into select names. For now, the only stocks I will be dollar cost averaging into are WNR-IPGP. But, as sure as I am sitting here, there will be 300% winners off of these lows, once people stop shitting themselves.